Uber touts freight as its third-mostimportant business after ride-hailing and food delivery. It made up nearly 3% of the firm’s revenues in 2018, but bookings grew by almost 450% that year—faster than any other division. Bill Driegert, boss of Uber Freight, thinks that it can grab most of the brokers’ $72bn, not just the digital bit. No rival can match its software or traffic data—both applicable to lorry logistics, Mr Driegert boasts. Brand recognition, he believes, should help win over drivers reluctant to take jobs from apps no one has heard of.
But unlike ride-hailing, which Uber more or less invented, it is a late arrival to freight. Its earlier efforts to disrupt haulage with the purchase of Otto, a startup developing self-driving lorries, came to naught. Grand plans to expand abroad—in March it presented a European app—run up against home-grown incumbents: Timocom of Germany and Teleroute of Belgium in Europe, and Rivigo, a hit Indian app, in Asia.
At home, conventional brokers have shown digital savvy. Goldman Sachs, a bank, estimates that from January to September last year Uber Freight accounted for 30% of haulage-app downloads. That is impressive, but shy of the combined 40% for the three apps from big brokers: C.H. Robinson’s Navisphere, J.B. Hunt’s Carrier 360 and DAT’s Load Board. The boom in road freight provides these companies with cash to plough into apps and algorithms. Landstar, another big broker, claims that a recent software upgrade cut the time needed to process a delivery by nearly a third.
Chris O’Brien, C.H. Robinson’s chief salesman, disputes the idea that the startups’ data on traffic are better. Lorry routes differ from taxi rides. Brokers can bolt on services—warehousing, last-mile delivery, assistance with customs or unforeseen problems—onto basic haulage. Here, Uber is miles behind.